Strengths and opportunities for a berry campaign with many uncertainties

The berry sector is once again immersed in a campaign with too many uncertainties: commercial, labor, consumer, health ... It already had to face them last year, putting its weaknesses and threats, but also its strengths, on the table. and opportunities.

A year ago we barely intuited what would arrive there in the month of March: a global pandemic that would disrupt everything, socially, economically, family, business ... absolutely everything. It also did it with the agri-food sector in general, and the fruit and vegetable sector in particular, which altered it, hit it, but quickly knew how to overcome and act, showing its weaknesses and threats, but also its strengths and opportunities.

This pandemic reached the berry sector, and specifically strawberries, in the middle of the season, at the peak of production, and which generated a drop in consumption, mainly in the domestic market, of -20,2% between February and April.

The health crisis also had its effects on exports, although less pronounced, registering decreases in the volumes sold of 2,9% in strawberry volume between January-Sept 2020 compared to the same date in 2019 (Source FEPEX).

Uncertainty

This is the word that best defines the beginning of the current exercise. “Uncertainty is the predominant note in the current situation that affects us all and our habits and routines. The limitations of geographical mobility continue to be a reality with a fearful horizon in the coming months that could once again have a decisive influence on consumption throughout Europe and, especially, the Horeca channel, both circumstances that were reflected in the markets already in the last campaign ”, points out Rafael Domínguez, manager of Freshuelva.

From a production point of view, in mid-December the first strawberries of the early varieties began to be harvested, which have enjoyed great quality. "The weather conditions have accompanied the plantation, since there have been rains that have favored the evolution of the plants and their proper rooting. Furthermore, we have not had high temperatures as it did last year, so there have not been great losses of plants ”, remarks the manager of Freshuelva.

According to data provided by the sector, the total area planted for the set of red fruits in the province of Huelva is similar to that of the previous year, with only a 1,0% contraction (11.630 hectares). The strawberry area decreased slightly by 1,8% (6.105 hectares); the blueberry increases its surface by 7,2% (3.310 hectares); while raspberries fell by 10% (2.070 hectares) and blackberries remained stable (145 hectares).

Workforce

Immersed in the middle of the campaign, one of the biggest concerns in the sector is the availability of labor, a factor that in the previous year largely conditioned the collection of the fruit. It is for this reason, as the employers tell us, since the end of last season, marked by the absence of a large part of the workforce hired in origin from Morocco, they have worked hand in hand with the Administration to solve the derived problem of the closure of borders due to the pandemic and to be able to guarantee the workforce.

A work that has paid off and since the end of December workers from Morocco have been arriving for these collection tasks. "They are doing it in a staggered manner, depending on the needs of the campaign, and under all health protection measures," says Rafael Domínguez.

Brexit and new foreign markets

The departure of the United Kingdom from the European Union is also one of the elements that brings uncertainty to this campaign, and therefore a threat to a sector, where exports to that market are key. In 2019, and according to FEPEX, strawberry shipments to the UK were 38.289 ™, only behind Germany and France. In the case of raspberries, they were 17.479 ™, behind Germany.

Finally, and “in extremis”, the EU and the United Kingdom reached a trade agreement, which has freed the berry sector, in addition to delays at the borders to gain access to the United Kingdom, from tariffs close to 11,20% for Strawberries; 8,80% for raspberries and 9,6% for blueberries and blackberries.

However, a new competitive scenario opens in which an increase in competition from third countries is expected. Faced with this situation, FEPEX considers that measures are necessary to improve the competitiveness of the fruit and vegetable sector in general, as this is the great challenge it faces, given the difference in costs compared to third countries and in yields compared to EU countries. . "This is precisely one of the threats that most concerns us in our sector," asserts the manager of Freshuelva.

Therefore, the opening of new markets beyond the borders of the EU is a constant claim. “Freshuelva does not cease in the search for new markets for its products, always aiming to diversify and face possible adversities, such as the one that now occurs with Brexit in the United Kingdom. We are aware that reaching more countries and anticipating is an advantage for marketing avoiding saturation in the markets of red fruits whose production has followed an important growth line in recent years ”, Rafael Domínguez argues.

In this context, Brazil has just approved the blueberry cultivation management systems carried out in the province of Huelva, a definitive procedure that will allow the commercialization of this fruit in that country soon, once the administrative procedures between both countries have been completed.

In addition to opening the Brazilian market, Freshuelva is working on the processing of other files that allow the export of blueberries to other countries such as China or Canada. In the first case, the request to open the market was submitted to MINECO (Ministry of Economic Affairs and Digital Transformation) two years ago and they are waiting for the priority of the same to be resolved in the negotiation with the Chinese government. Canada has also been requested and they are waiting for the export sanitary protocol to be sent to them to verify it and verify compliance with it with the corresponding technical visit to the plantations, an essential requirement before exports are authorized.

A SWOT to work on

As we have seen, there are several threats facing the sector, campaign after campaign, now aggravated by the global pandemic situation, which, as we have pointed out, adds many uncertainties. An excessive atomization of the sector could point to this SWOT as its main weakness, because although more than a decade ago there were trade unions that have proven to be successful formulas, the sector continues to compete with itself in many markets.

But it has a great strength, a flag on which to work: the quality of its red fruits, its sustainable production systems, economically, socially and environmentally; and an opportunity today more than ever, perhaps derived from this same pandemic: the healthy qualities of berries. Consumers want, need and demand products that help their health, and red fruits are one of their best allies.

Knowing and working on this SWOT is a good starting point for a sector that has grown in the face of perhaps the greatest challenge in its history: a global pandemic.

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